No-grounds Evictions to Be Banned in NSW
It will soon be illegal for landlords to kick tenants out of their homes at the end of their leases without reason in a major win for New South Wales’ (NSW) struggling renters.
The shift to a “reasonable grounds” model for evictions comes as the Perrottet government matches many of Labor’s rental commitments, cementing change as the March 25 state election nears.
The NSW Greens introduced a motion attempting to ban no-grounds evictions during a late sitting of parliament last year, but it was not supported by either major party.
Asked what had changed since then, Premier Dominic Perrottet on Friday said it was important not to rush into new measures.
“These changes were made in other states recently, but also … across the state, we’re seeing landlords move from long-term tenancies to short-term lettings, like Airbnb,” he told reporters.
“That’s putting a lot of pressure on the rental market. What we want to do (is) give confidence as well, for landlords to continue to remain in the long-term rental market.”
Rushing changes would see landlords move into short-term letting, drying up the property market as had happened in regional NSW, Mr Perrottet added.
NSW Greens housing spokeswoman Jenny Leong said ending no-grounds evictions would be a significant help for struggling renters.
“This is a long overdue reform, and we’re glad to see both major parties finally come to the table,” she said.
“But let’s be clear that they were dragged here by tenant advocates, activists on the street and renters struggling with out-of-control rents and unfair evictions.”
The Liberal-National coalition also committed to introducing a portable bond scheme and bringing in three- and five-year standard leases.
NSW Fair Trading would also be tasked to attend rental inspections undercover to spot dodgy real estate agents breaking newly imposed bans on rental bidding.
Solicited rental bidding, or a rental auction occurs when estate agents entice prospective tenants to offer increased rental bids to secure a property.
Offending agents can receive fines of $5,500 (US$3,706) for an individual and $11,000 for a corporation.
NSW Labor’s rental policy includes banning no-grounds evictions, outlawing secret rental bidding, introducing a portable bond scheme and establishing an independent rental commissioner to advocate for tenants.
The party will also make it easier for renters to ask for pets in their homes.
The measures come as rental prices in capital cities have risen 14.6 percent in the past year and 11.6 per cent in the regions, according to a Domain report. Fewer than one in 100 properties spends three weeks or more on the market.
